Vancouver, Washington-based Northwest Pipe Company announced Monday that net sales for the quarter ended March 31, 2013 decreased 1.1 percent to $140.6 million compared to $142.2 million in Q1 2012. Net income for Q1 2013 was $9.5 million, up from $4.7 million for Q1 2012.
Water Transmission sales increased by 34.5 percent to $78.6 million in Q1 2013 from $58.4 million in Q1 2012. The increase in net sales was due to a 53 percent increase in tons produced, offset by a 12 percent decrease in the average selling price per ton. Water Transmission gross profit increased to $19.9 million in Q1, up from $9.7 million in the same period of 2012.
Tubular Products sales decreased 26 percent to $62 million in Q1 2013 from $83.7 million in Q1 2012, driven by a 9 percent decrease in average selling price per ton and a 19 percent decrease in tons sold from 66,600 tons in Q1 2012 to 53,900 tons in Q1 2013.
"Based on current market conditions, we believe the first quarter will be our strongest quarter in 2013. The Water Transmission segment had a record quarter for gross profit as a percentage of net sales. The first quarter net sales and gross profit were driven by a number of large projects, including Lake Texoma, the largest project in Company history," said Scott Montross, President and Chief Executive Officer of the Company. "As expected, Tubular Products net sales and margins were significantly lower compared to the first quarter of 2012 as we experience continued high levels of imports and a falling rig count. In the second quarter of 2013, we anticipate that Water Transmission will have lower net sales, gross profit and gross profit as a percentage of sales compared with the first quarter of 2013. In Tubular Products we expect to see gross profit levels that are near breakeven as high levels of imports continue to negatively impact segment earnings for the near term."